Scaling Your Small Business: Three Signs You're Ready to Scale Your Business
Updated: May 14, 2020
“The secret of change is to focus all your energy not on fighting the old but on building the new.” — Socrates, father of Western philosophy
Scale your business! It’s the entrepreneurial catchphrase that jumps off the webpage with every click of the mouse.
It always keeps you thinking about your business model. Are you too cautious? Is your way good enough for ultimate success? Is it the right time for you?
To assist in answering these and other scale-related questions let’s start at the best place – Square One!
1. Let's Define "Scale Up"
The Merriam-Webster online dictionary describes scale (about business acumen) as shorthand for ‘scale-up’ (to grow or expand in a proportional and usually profitable way) and as a noun that means “proportional growth especially of production or profit.
Interestingly, even M-W places the cautionary word usually before the word profitable as profit is the primary focus of taking the leap and taking action which results in scaling your business.
2. Why Scale Up Your Business?
We’ve cut through the business jargon and agree there’s now a clear definition of scaling up and now it’s time to measure all the intangibles of your business model to make a scaling decision.
While generating increased profits is a primary factor, there are several other factors to consider before enacting your business growth ambitions.
Strategic Goals – Are previously defined objectives and goals the reason you are looking to scale up? What effect will this growth move have on these targets to generate success? Will a scale-up require a rethinking?
Innovation Driven – Is the entrepreneurial thought process stagnating? What improvements in this area will occur as a result of a scale-up?